The U.S. trade deficit widened more than expected, as a surge in imports exceeded a smaller increase in exports. In January, the trade deficit expanded 34.0% to -$131.4B, the largest one month jump since 2015 and the largest deficit on record.
The U.S. international trade in goods and services, also known as the FT-900, is published monthly by the Bureau of Economic Analysis with data going back to 1992. The monthly reports include revisions that go back several months. This trade balance measures the difference in value between imported and exported goods and services.
Here is an excerpt from the latest report:
The U.S. monthly international trade deficit increased in January 2025 according to the U.S. Bureau of Economic Analysis and the U.S. Census Bureau. The deficit increased from $98.1 billion in December (revised) to $131.4 billion in January, as imports increased more than exports. The goods deficit increased $33.5 billion in January to $156.8 billion. The services surplus increased $0.2 billion in January to $25.4 billion.
This indicator is somewhat volatile, with an 8.7% absolute average monthly change. The latest data point saw a 34.0% month-over-month change. Here is a snapshot that gives a better sense of the extreme volatility of this indicator.
As mentioned earlier, the trade balance measures the difference in value between imported and exported goods and services. In January, imports increased by $36.6 billion (10.0%) to $401.2B. This is the highest level on record for imports and is the largest monthly increase since 2020. Meanwhile exports increased by $3.3 billion (1.2%) to $269.8B. Since imports increased more than exports did, the trade deficit decreased.
